Do you have a Low Credit Score?

1. Do you have a Low Credit Score? Avoid these things to get a High CreditScore You might want to apply for a loan in the future and good credit scores will help you in acquiring that loan. So here are 7 ways to help with your creditscores. Closing Old CreditCards 15% of your credit score gives importance to the length of your credit history; the longer your credit history is; the better it will reflect on your credit scores. Closing old credit cards will only put a gap in your credit history and if you were to cancel your oldest card; that will make your credit history shorter than it reallyis. Having only Credit Cards or OnlyLoans It takes credit to help in building credit. You need to have a diversity of credit mix, meaning that having just credit cards or just loans are not going to look good on your credit scores. This factor can either help increase your credit scores or knock them off. So do consider getting a variety of debt if you wish to score better on your credithistory. Closing Credit Cards that still havebalance We’ve already established that you shouldn’t close credit cards, but if you really do have to; then opt for the ones that still have available credit. That is because closing cards without balances will only increase your credit utilization and that would not reflect positively on your creditscores. Applying for several Credit Cards orLoans It does take credit to build credit and for that you’ll apply for credit cards and loans, right? But do keep a small piece of advice in mind. Your credit history also takes into account credit inquiries which amount to 10% of the credit scores. Applying for several credit cards can cause your credit scores to drop. So will be the case if you apply for any loans within a short period of time. So just keep such applications to a minimum if you wish to improve your credit scores. Making LatePayments Missed the payment date? Well, it’s not a problem. You can just make a late payment and be done with it. But it you get accustomed to making late payments, it won’t be beneficial for your credit history. Your payment history makes up 35% of your credit score. So the next time your payments getdelayed,

2. remember that it will decrease your chances of acquiring a loan in the future. The best way to prevent this is to set an automatic payment schedule so that the payments get dispersed at the righttime. FilingBankruptcy Are you thinking about taking that final leap? Keep in mind that this step could very well destroy all that you have managed to score on your credit history. Opt for customer credit counseling before you file for bankruptcy. High level ofdebt Credit Utilization is another part of the credit scores that takes in account the level of debt. If your credit card limits are exceeded, your credit utilization will increase but that would in turn, lower your credit scores. So abstain from exceeding the allotted limit ofcredit.